While Vanguard’s funds are among the very best
available (principally due to their extremely low fees), some funds from DFA are, in
some
ways, superior.

The table below compares DFA funds with Vanguard funds in each of several
asset classes. For each asset class, DFA’s fund is listed along with Vanguard’s
fund. Each entry includes the fund name, NASDAQ symbol, and expense ratio.
For each asset class, there is also a brief analysis of the relevant differences
between the two
offerings. Within each asset class, we tried to assess which offering is “better”
– DFA’s or Vanguard’s (or any other fund). We have highlighted the preferred fund in each case by bolding and
italicizing its information.

Note that “better” refers to our expectation of which fund will be a better
holding in the long term. In
making such a determination, we take into account not only expected long-term
performance, but also long-term expected risk/volatility and any trading
restrictions imposed by the funds. For more information on the criteria we
use to judge mutual funds, see here.

Asset Class

DFA

Vanguard

Analysis

Money Market

N/A

Vanguard Prime Money Market Fund Admiral Shares (VMRXX)

E/R: 0.10%

DFA does not have an offering in this asset class.

Another fine choice would be the
TIAA-CREF Money Market Fund (TIAXX). It has an E/R of 0.23%.

Short Term US Bonds

DFA
Short-Term Government Portfolio (DFFGX)

E/R: 0.19%

Vanguard Short-Term Corporate Bond Index Fund Admiral Shares (VSCSX)

E/R: 0.07%

See our
detailed discussion of the leading options for this asset class
here.

Short Term Global Bonds

DFA
Five-Year Global Fixed Income Portfolio (DFGBX)

E/R: 0.27%

or

DFA Short-Term Extended Quality Portfolio (DFEQX)

E/R: 0.22%

or

DFA Two-Year Global Fixed Income Portfolio (DFGFX)

E/R: 0.17%

N/A

Vanguard does not have an offering
in this asset class.

See our
detailed discussion of the leading options for this asset class
here.

For those who do not have access to DFA, we suggest they limit their bond
holdings to domestic bond funds.

Short Term Tax-Exempt Bonds

DFA Short-Term Municipal Bond Portfolio (DFSMX)

E/R: 0.22%

Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX)

E/R: 0.12%

See our
detailed discussion of the leading options for this asset class
here.

Inflation-Protected Securities

DFA Inflation-Protected Securities Portfolio (DIPSX)

E/R: 0.12%

Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX)

E/R: 0.10%

See our
detailed discussion of the leading options for this asset class
here.

Balanced Funds

See our detailed discussion of the leading options for this asset class
here.

Large Cap

DFA Enhanced US Large Company Portfolio (DFELX)

E/R: 0.23%

Vanguard Large-Cap Index Fund Admiral Shares (VLCAX)

E/R: 0.08%

See our
detailed discussion of the leading options for this asset class
here.

Tax-Managed Large Cap

DFA Tax-Managed US Equity (DTMEX)

E/R: 0.22%

Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX)

E/R: 0.11%

See our detailed discussion of the leading options for this asset class
here.

The DFA fund isn't really a "large-cap" fund — it is an all-market fund.

Large Cap Value

DFA U.S. Large Cap Value Portfolio (DFLVX)

E/R: 0.27%

Vanguard Value Index Fund Admiral Shares (VVIAX)

E/R: 0.08%

See our detailed discussion of the leading options for this asset class
here.

Our first choice here is the
Powershares S&P 500 Value with Momentum ETF (SPVM). It has
an E/R of 0.30%.

Tax-Managed Large Cap Value

DFA Tax-Managed U.S. Marketwide Value Portfolio (DTMMX)

E/R: 0.37%

Vanguard Mega Cap 300 Value ETF (MGV)

E/R: 0.11%

See our detailed discussion of the leading options for this asset class
here.

Our first choice here is the
Powershares S&P 500 Value with Momentum ETF (SPVM). It has an E/R of
0.30%.

Large Cap
Momentum

N/A

N/A

Neither DFA nor Vanguard has an offering
in this asset class.

Our first choice here is the AQR Large Cap
Momentum Style Fund
(AMOMX). It has an E/R of 0.40%.

Tax-Managed Large Cap
Momentum

N/A

N/A

Neither DFA nor Vanguard has an offering
in this asset class.

Our first choice here is the AQR TM Large Cap
Momentum Style Fund (ATMOX). It has an E/R of 0.40%.

Small Cap

DFA U.S. Microcap Portfolio (DFSCX)

E/R: 0.53%

Vanguard Small Cap Index Fund Admiral Shares (VSMAX)

E/R: 0.08%

See our
detailed discussion of the leading options for this asset class
here.

Our first choice here is the Bridgeway Ultra-Small Company Market Fund (BRSIX). It has
an E/R of 0.77%.

Tax-Managed Small Cap

DFA Tax-Managed U.S. Small Cap Portfolio (DFTSX)

E/R: 0.52%

Vanguard Tax-Managed Small Cap Fund Admiral Shares (VTMSX)

E/R: 0.12%

See our
detailed discussion of the leading options for this asset class
here.

Our first choice here is the iShares Microcap Index Fund (IWC). It has
an E/R of 0.60%.

Small Cap Value

DFA U.S. Small Cap Value Portfolio (DFSVX)

E/R: 0.53%

Vanguard Small Cap Value Index Fund Admiral Shares (VSIAX)

E/R: 0.08%

See our
detailed discussion of the leading options for this asset class
here.

Our first choice here is the Guggenheim S&P SmallCap 600 Pure Value ETF (RZV). It has
an E/R of 0.35%.

Tax-Managed Small Cap Value

DFA Tax-Managed U.S. Targeted Value Portfolio (DTMVX)

E/R: 0.46%

Vanguard Small Cap Value Index Fund Admiral Shares (VSIAX)

E/R: 0.08%

See our
detailed discussion of the leading options for this asset class
here.

Our first choice here is the Guggenheim S&P SmallCap 600 Pure Value ETF (RZV). It has
an E/R of 0.35%.

See our
detailed discussion of the leading options for this asset class
here.

Foreign REITs

DFA International Real Estate Securities Portfolio (DFITX)

E/R: 0.31%

Vanguard Global ex-U.S. Real Estate Fund Admiral Shares (VGRLX)

E/R:
0.15%

See our
detailed discussion of the leading options for this asset class
here.

Commodity Futures

DFA Commodity Strategy Portfolio (DCMSX)

E/R: 0.33%

N/A

Vanguard does not have an offering here.

See our
detailed discussion of the leading options for this asset class
here.

Bottom Line

If you are managing your investments yourself, then you don't have access
to DFA funds and we would therefore be primarily
recommending Vanguard funds. If you
diligently follow a well thought out investment plan, the
Vanguard funds will serve you quite well. In
particular, for those doing it themselves, we might strongly recommend one of Vanguard's
balanced funds, in particular, one of their
"Target Retirement" funds could serve as an "all-in-one" complete investment
portfolio (i.e., for you to put all your money in).

If you are having your assets
professionally managed, we would recommend (what we believe to be) "best-in-class" investments in
each asset class. Our current preferences for each asset class are
listed in the table above.

For assistance in making the decision as to whether or not you should hire
an investment advisor, see here.

This web page contains the current opinions of Eric E. Haas at the time it is
written — and such opinions are subject to change
without notice. This web page is intended to serve two purposes:

To educate the public; and

To provide disclosure of Mr. Haas' opinions to prospective clients.
We believe that prospective clients are well-served by being made aware of
what they are buying — and what they are buying is advice
that is based on these opinions.

We believe the information provided here to be useful and accurate at the time
it is written.
Information contained herein has been obtained from sources believed to be
reliable, but is not guaranteed.

No investor should invest solely on the basis of information listed here.
Before investing, it is important to consult each prospective investment's
prospectus and consider both its risk/return characteristics and its effect on
your overall portfolio.

This information is not intended to be a
substitute for specific individualized tax, legal, or investment planning
advice. Where specific advice is necessary or appropriate, Altruist
recommends consultation with a qualified tax adviser, CPA, financial planner, or
investment adviser. If you would like to discuss the rationale or support
for any particular idea expressed on this web page, feel free to
contact us.